UK inflation data the main highlight in the European morning
Good day, everyone! Hope you're all doing well as we get things going here in the session ahead. Markets are mostly steady to start the day as we turn our attention towards the FOMC meeting to come later in US trading.
Risk assets got a lift from overnight developments in the US-China trade rhetoric after Trump and Xi had a phone call to set up a date at the G20 summit. Looking ahead, we'll have some data points to move things along in the session but all eyes will be on the Fed today.
0600 GMT - Germany May PPI figures
Prior release can be found here. A lagging indicator of inflation pressures in the German economy. As such, it is a low-tier release.
0800 GMT - Eurozone April current account balance
Prior release can be found here. General indication of flows in/out of the euro area economy. Not a major release by any means at this point in time.
0830 GMT - UK May CPI figures
Prior report can be found here. Following a seasonal boost to services inflation due to Easter in April, we should see weaker inflationary pressures in May overall. Core inflation is expected to fall to +1.6% y/y from the +1.8% y/y reading in April. Nonetheless, the data here shouldn't really have a profound impact in terms of moving BOE rate expectations as Brexit remains the main issue for the pound in the bigger picture.
0900 GMT - Eurozone April construction output data
Prior release can be found here. The construction sector has been a bright spot in the euro area in Q1 but is expected to tail off in the second quarter so expect some toned down readings here compared to the first three months of the year. A minor data point.
1000 GMT - UK CBI June trends total orders, selling prices
Prior release can be found here. The headline is a survey on manufacturers to rate the level of volume for orders expected during the next 3 months. Export orders are on the decline following Brexit stockpiling in Q1 so let's see if there is any prolonged effect of the negative impact over the next few months. A minor data point.
1100 GMT - US MBA mortgage applications w.e. 14 June
Weekly US housing data, measures the change in number of applications for mortgages backed by the MBA during the week. Not the biggest of data points, but a general indicator of the housing sector sentiment.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading!
